Zimbabwean Accountant Faces Charges for R17 Million Fraud

A Zimbabwean accountant, Edward Mwanandimai, is accused of stealing over R17 million from his former employer. The employer, the Education and Training Unit (ETU), is a Johannesburg-based non-profit that promotes democracy and development. The theft allegedly took place between 2014 and 2020.

How the Fraud Was Discovered

The ETU noticed financial irregularities after Mwanandimai resigned in May 2020. Investigators found he had redirected funds intended for creditors into his accounts.

Initially, Mwanandimai admitted to stealing R6.8 million. He signed an acknowledgment of debt in September 2020 and repaid this amount. However, further checks revealed the total theft exceeded R17 million. Despite partial repayments, court documents state that he still owes R11 million.

The Fraud Scheme Explained

Mwanandimai used the ETU’s online banking system to carry out the fraud.

• He convinced colleagues to expand his access to the account.
• He replaced legitimate creditors’ banking details with his own or those of his company, Lopdale Services and Investments.
• Payments intended for creditors, such as the SA Revenue Service, went directly to him or his company.

This left legitimate creditors unpaid and caused financial losses for the ETU.

Court Case Updates

The North Gauteng High Court reviewed the case on October 28. Mwanandimai admitted to owing money but contested the exact amount.

Judge Soraya Hassim issued a provisional sequestration order. The court required Mwanandimai and other involved parties to explain why his estate should not be fully sequestrated. The judge also dismissed Mwanandimai’s claims that the allegations were defamatory or irrelevant.

Criminal Charges Still Uncertain

The ETU has not confirmed whether it filed criminal charges against Mwanandimai. Neither he nor his legal team provided comments.

Lessons for Non-Profits

This case highlights the risks of poor financial oversight. Non-profits must enforce stronger checks to avoid fraud, especially when managing large budgets.

Rising Financial Crimes in South Africa

Mwanandimai’s case reflects a worrying pattern of financial misconduct. Other high-profile cases include:

• A Durban accountant jailed for 10 years for money laundering.
• A Gauteng accountant sentenced to 50 years for stealing R500 million.

These examples stress the need for stricter regulations in the financial sector.

What’s Next?

The court will soon decide whether to finalize the sequestration order. If approved, Mwanandimai’s assets may be sold to recover the stolen money. The case also raises concerns about whether criminal charges will follow.